PPF Calculator
Public Provident Fund · 7.1% p.a. · Tax-free maturity · Updated FY 2026–27
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Balance growth — year by year
Year-by-year PPF statement
Showing first 10 years · Rate: 7.1%
| Year | Opening balance | Deposit | Interest @ 7.1% | Closing balance | Total deposited | Total interest |
|---|---|---|---|---|---|---|
| 1 | ₹0 | ₹1,50,000 | ₹10,650 | ₹1,60,650 | ₹1,50,000 | ₹10,650 |
| 2 | ₹1,60,650 | ₹1,50,000 | ₹22,056 | ₹3,32,706 | ₹3,00,000 | ₹32,706 |
| 3 | ₹3,32,706 | ₹1,50,000 | ₹34,272 | ₹5,16,978 | ₹4,50,000 | ₹66,978 |
| 4 | ₹5,16,978 | ₹1,50,000 | ₹47,355 | ₹7,14,333 | ₹6,00,000 | ₹1,14,333 |
| 5 | ₹7,14,333 | ₹1,50,000 | ₹61,368 | ₹9,25,701 | ₹7,50,000 | ₹1,75,701 |
| 6 | ₹9,25,701 | ₹1,50,000 | ₹76,375 | ₹11,52,076 | ₹9,00,000 | ₹2,52,076 |
| 7 | ₹11,52,076 | ₹1,50,000 | ₹92,447 | ₹13,94,523 | ₹10,50,000 | ₹3,44,523 |
| 8 | ₹13,94,523 | ₹1,50,000 | ₹1,09,661 | ₹16,54,184 | ₹12,00,000 | ₹4,54,184 |
| 9 | ₹16,54,184 | ₹1,50,000 | ₹1,28,097 | ₹19,32,281 | ₹13,50,000 | ₹5,82,281 |
| 10 | ₹19,32,281 | ₹1,50,000 | ₹1,47,842 | ₹22,30,123 | ₹15,00,000 | ₹7,30,123 |
PPF vs ELSS vs FD — ₹150K/year for 15 years
| Instrument | Expected return | Maturity amount | Tax on interest/gains | Lock-in | Risk |
|---|---|---|---|---|---|
| PPF(this calc) | 7.1% (guaranteed) | ₹40.68 L | Nil — EEE status | 15 years | Zero |
| ELSS | 11–14% (market-linked) | ₹63.07 L | 10% LTCG above ₹1.25L/yr | 3 years per instalment | Moderate–High |
| FD (5-yr tax saver) | 6.5–7.5% (bank-specific) | ₹40.33 L | At income tax slab rate | 5 years | Zero |
| NSC | 7.7% (government) | ₹42.85 L | Interest taxable (deemed reinvested) | 5 years | Zero |
5 proven strategies to maximise your PPF returns
PPF Calculator 2026 - Complete Guide to Public Provident Fund
The Public Provident Fund (PPF) is India's most widely used long-term guaranteed savings instrument - and for good reason. Backed by the Government of India with sovereign guarantee, it carries absolutely zero credit risk and enjoys a unique triple-exempt (EEE) tax status that no bank FD, NPS tier, or debt mutual fund can match. Your annual contributions are deductible under Section 80C (up to ₹1.5 lakh), interest credited every March 31 is fully exempt under Section 10(11), and the entire maturity corpus - principal plus all accumulated interest - is tax-free with no capital gains liability.
In FY 2026-27, the PPF interest rate is 7.1% per annum, compounded annually, unchanged since April 2020. For a salaried taxpayer in the 30% income tax bracket, this 7.1% tax-free return is equivalent to a pre-tax fixed deposit yield of 10.14% - a rate no bank in India currently offers on deposits. For those subject to the highest surcharge (~34.32% effective rate), the pre-tax equivalent rises to 10.82%.
This guide explains exactly how PPF works, how to calculate your returns, how interest is really computed (the 5th-day rule), when and how to withdraw or take loans, how to compare PPF with ELSS and FDs on an after-tax basis, and what strategy maximises your long-term wealth from this instrument.
PPF account rules - complete reference table (FY 2026-27)
These are the current operating rules for all PPF accounts, whether opened at a bank or post office. Rules are governed by the PPF Scheme, 2019 and are uniform across all authorised institutions.
| Rule | Details |
|---|---|
| Current interest rate | 7.1% per annum, compounded annually. Reviewed quarterly by MoF. |
| Interest credit date | March 31 of every financial year - credited to the account balance |
| Minimum deposit per year | ₹500 per financial year (to keep the account active) |
| Maximum deposit per year | ₹1,50,000 across all deposits in a financial year (all PPF accounts in the family combined) |
| Number of transactions allowed | Maximum 12 deposits per financial year (one per month, any amount above ₹500) |
| Base tenure | 15 financial years from the end of the year in which the account was opened |
| Extension options | In 5-year blocks after 15-year maturity - indefinitely, with or without fresh contributions |
| Partial withdrawal | Available from the 7th financial year onwards; maximum 50% of balance at end of 4th preceding year; one withdrawal per year; tax-free |
| Loan facility | From 3rd to end of 6th year; up to 25% of balance at end of 2nd preceding year; interest at PPF rate + 1% = 8.1%; repayable in 36 months |
| Premature closure | Allowed only after 5 full financial years for specific reasons: life-threatening illness (self, spouse, children, or parents), higher education of account holder or minor child, change in residency status (NRI). Penalty: 1% interest deducted on the entire account history. |
| Eligible account holders | Resident Indian individuals. One account per person. Parents/guardians may open on behalf of a minor (counts as one account per family). |
| NRI eligibility | Cannot open a new account. Existing accounts (opened as resident) may continue until maturity but cannot be extended thereafter. |
| Nomination | Mandatory nomination available. Joint holding not permitted. |
| Where to open | Any authorised bank (SBI, HDFC, ICICI, Axis, Kotak, Bank of Baroda, PNB, etc.) or any post office branch across India |
| Account availability | Online (net banking, mobile app) or branch. Passbook is digital at most banks. |
| Tax on withdrawal | Nil - completely exempt (EEE status under Section 10(11)) |
How PPF interest is calculated - the 5th-day rule explained
Most PPF depositors assume interest is calculated on their year-end balance. It is not. PPF interest is calculated monthly, on the minimum balance between the 5th and last day of each month. The 12 monthly interest figures are accumulated and credited to the account as a lump sum on March 31 each year.
This monthly calculation method creates the critical 5th-day rule: any deposit made on or before the 5th of a month is included in that month's minimum balance and earns interest for that month. A deposit made on the 6th or later is not counted for that month - you lose one full month's interest on the deposited amount.
PPF interest formula - month by month
April 1 deposit of ₹1.5L: earns interest for all 12 months. Over 15 years, April 1 deposits earn approximately ₹40.68 lakh at maturity. Recommended strategy: lump-sum on April 1 each year, or monthly deposits before the 5th of each month.
April 6 deposit of ₹1.5L: loses April's interest (₹888). Depositing on the last day of March each year instead of April 1 also loses one month's interest. Over 15 years of such mistakes, compounded loss exceeds ₹18,000–₹22,000.
PPF tax benefits - why EEE status is worth far more than it looks
PPF is one of only three instruments in India with full EEE (Exempt-Exempt-Exempt) tax status - the others being EPF and certain life insurance proceeds. EEE means: (E1) the deposit qualifies for Section 80C deduction, (E2) interest earned every year is exempt under Section 10(11), and (E3) the maturity amount is fully exempt from tax. No capital gains tax. No TDS. No surcharge.
To understand the true value of this, compare PPF with a taxable bank fixed deposit at the same nominal rate. The table below shows what pre-tax FD rate would be needed to match PPF's 7.1% after-tax return at each tax bracket:
| Tax bracket (FY 2026-27) | Effective tax rate (with cess) | PPF effective pre-tax return | FD rate needed to match PPF | Currently available? | Verdict |
|---|---|---|---|---|---|
| 30% + 37% surcharge | ~42.74% | 12.41% | 12.41%+ | ❌ Not available | PPF wins by a wide margin |
| 30% + 25% surcharge | ~39.00% | 11.64% | 11.64%+ | ❌ Not available | PPF wins |
| 30% (no surcharge) | 31.20% | 10.32% | 10.32%+ | ❌ Not available | PPF wins |
| 20% (new regime slab) | 20.80% | 8.96% | 8.96%+ | ❌ Rare | PPF wins for most people |
| 10% | 10.40% | 7.93% | 7.93%+ | ⚠️ Some small banks | PPF competitive |
| 0% (no tax liability) | 0% | 7.10% | 7.10%+ | ✅ Available | FD may match; PPF adds liquidity rules |
Formula: Pre-tax equivalent = PPF rate ÷ (1 − effective tax rate including cess and surcharge).
Beyond the interest comparison, the Section 80C deduction on deposits adds a further layer of benefit. A taxpayer in the 30% bracket who deposits ₹1.5 lakh per year in PPF saves ₹46,800 annually in income tax (₹45,000 tax at 30% + 4% cess). Over 15 years, that is ₹7.02 lakh in tax saved on deposits alone - before counting the tax-free interest.
For a married couple where both are taxpayers in the 30% bracket, opening one PPF account each and maxing both at ₹1.5L/year saves ₹93,600/year in taxes on deposits, and builds two independent, sovereign-backed tax-free corpuses of ₹40L+ each over 15 years - a total of ₹80L+ in tax-free wealth.
How much will my PPF give at maturity? - quick reference table
The table below shows estimated PPF maturity amounts for different yearly deposit levels at 7.1% over 15, 20, and 25 years. All values assume deposits at the start of each financial year (April 1).
| Yearly deposit | Monthly equivalent | Total deposited (15 yr) | Maturity at 15 years | Interest earned | Maturity at 20 years | Maturity at 25 years |
|---|---|---|---|---|---|---|
| ₹12,000 | ₹1,000 | ₹1.80 L | ₹3.26 L | ₹1.46 L | ₹5.37 L | ₹8.14 L |
| ₹36,000 | ₹3,000 | ₹5.40 L | ₹9.77 L | ₹4.37 L | ₹16.10 L | ₹24.43 L |
| ₹60,000 | ₹5,000 | ₹9.00 L | ₹16.29 L | ₹7.29 L | ₹26.83 L | ₹40.72 L |
| ₹1,00,000 | ₹8,333 | ₹15.00 L | ₹27.12 L | ₹12.12 L | ₹44.72 L | ₹67.86 L |
| ₹1,20,000 | ₹10,000 | ₹18.00 L | ₹32.54 L | ₹14.54 L | ₹53.66 L | ₹81.44 L |
| ₹1,50,000 | ₹12,500 | ₹22.50 L | ₹40.68 L | ₹18.18 L | ₹67.08 L | ₹1.02 Cr |
PPF partial withdrawals and loans - complete rules and limits
Despite its 15-year lock-in, PPF is not completely illiquid. There are two mechanisms for accessing funds during the tenure - loans in early years and partial withdrawals from year 7. Both are governed by strict rules that define eligible amounts and frequency.
| Feature | PPF Loan (Years 3–6) | Partial Withdrawal (Year 7+) |
|---|---|---|
| Available from | Start of 3rd financial year | Start of 7th financial year |
| Maximum amount | 25% of balance at end of 2nd year preceding loan year | 50% of balance at end of 4th year preceding withdrawal year (or end of immediately preceding year, whichever is lower) |
| Frequency | One loan at a time (must repay before next) | One withdrawal per financial year |
| Cost | PPF rate + 1% = 8.1% p.a. (simple interest) | Free - no interest charged |
| Repayment timeline | Within 36 months (3 years); else interest rate rises to PPF rate + 6% | No repayment required |
| Tax treatment | Loan proceeds: tax-free; interest paid: not deductible | Completely tax-free |
| Impact on principal | None - principal stays intact and earns full interest | Reduces balance permanently; future interest calculated on lower balance |
| Best use case | Short-term cash crunch in years 3–6 (medical, education) | Periodic liquidity without closing account (year 7 onwards) |
A key strategic point: a PPF loan does not reduce the principal, so the entire balance continues earning 7.1% on the full amount - making the effective cost of borrowing (8.1% loan interest) lower than the opportunity cost calculation suggests. For a short-term need of ₹2–5 lakh in years 3–6, the PPF loan is almost always cheaper than a personal loan at 12–18% p.a. and smarter than prematurely closing or withdrawing from other investments.
PPF extension after 15 years - with or without contributions?
At maturity (end of 15th financial year), you have three choices: close the account and take the full corpus, extend with fresh contributions, or extend without contributions. The decision should be driven entirely by whether you need the money now and what alternatives are available.
A practical scenario: At 15-year maturity you have ₹40.68 lakh in your PPF. Extending without contributions for another 10 years at 7.1% grows this to approximately ₹80.3 lakh - completely tax-free, requiring zero further deposits and allowing one partial withdrawal per year. This is the closest thing India has to a guaranteed, sovereign-backed tax-free retirement annuity.
PPF vs ELSS vs FD vs NSC - which 80C investment is best in 2026?
Every year, taxpayers invest ₹1.5 lakh under Section 80C. The choice between PPF, ELSS, tax-saver FD, and NSC has significant long-term consequences. Here is a detailed comparison across every dimension that matters, based on 2026 rates and regulations:
| Factor | PPF | ELSS | Tax-Saver FD | NSC |
|---|---|---|---|---|
| Expected return | 7.1% (guaranteed) | 11–14% (market-linked, not guaranteed) | 6.5–7.5% (bank-specific) | 7.7% (government, fixed at investment) |
| Return type | Fixed; revised quarterly by govt | Equity market returns (CAGR) | Fixed for 5-year tenure | Fixed at time of subscription |
| Risk | Zero - sovereign guarantee | Moderate to high (equity market) | Zero - DICGC insured up to ₹5L | Zero - sovereign guarantee |
| Lock-in period | 15 years (partial access from yr 7) | 3 years per SIP instalment | 5 years (no premature closure) | 5 years |
| 80C deduction | Yes - up to ₹1.5L | Yes - up to ₹1.5L | Yes - up to ₹1.5L | Yes - up to ₹1.5L; interest also deductible (deemed reinvested in years 1–4) |
| Tax on interest/gains | Nil - fully exempt (EEE) | 10% LTCG on gains above ₹1.25L/yr | At income tax slab rate (TDS applies) | Interest taxable at slab (added to income); deemed reinvested - reduces annual tax |
| Tax on maturity | Nil | 10% LTCG on total gain above ₹1.25L | Nil on principal; interest taxed as earned | 5th year interest taxable at slab |
| Liquidity | Loan in yr 3–6; withdrawal from yr 7 | Full after 3-year lock-in; any time after | Nil - no premature closure | Nil - no premature closure |
| Best suited for | All salaried / self-employed; core savings | Young investors with 10+ year horizon | Senior citizens; risk-averse investors | Safe, predictable return seekers; no need for liquidity in 5 years |
| After-tax return (30%) | 7.1% (tax-free) | ~9.9–12.6% after 10% LTCG* | 4.6–5.2% after slab tax | ~5.3–5.5% after slab tax on interest |
*ELSS after-tax return assumes 12% pre-tax CAGR and ₹1.25L LTCG exemption utilised annually. Actual ELSS returns vary significantly with market conditions - historical Nifty 500 CAGR is 13.5% over 20 years but individual fund performance varies.
The optimal 80C strategy in 2026 for most salaried taxpayers in the 30% bracket: invest ₹1L–₹1.2L in PPF annually (guaranteed, risk-free floor), and ₹30K–₹50K in ELSS (equity growth kicker). This gives a blended expected after-tax return of ~8–9% with manageable risk. As you approach within 10 years of retirement, shift progressively more toward PPF. Never substitute ELSS for PPF if you are risk-averse or within 5 years of a known large expense.